
Climate plan may cost 20 billion DKK
Economist Michael Svarer estimates that the Danish government’s ambition to establish 250,000 hectares of new forest will cost around 20 billion Danish kroner, which spreads to about one billion kroner per year until 2045. The area, twice the size of Lolland, is currently used by agriculture. This calculation surfaced in the green tax reform report from February, which Svarer headed. To achieve this, farmers would be compensated for not cultivating their land and instead grow new woodland at a cost of 92,000 kroner per hectare, maxing out EU state aid rules. The government’s forestation plans are expected to contribute to CO2 reductions by 0.1 million tons by 2030 and two million tons by 2045, by when Denmark aims to be climate-neutral. The proposal includes primarily productive forests, comprising fast-growing deciduous and coniferous trees. The Climate Council has suggested planting 414,000 hectares to meet climate goals and the EU Water Framework Directive by 2027.